Market Analysis
Louisville Rental Market
Rental investment market data and analysis · Updated November 2026
Median Home Price
$310,000
Average Monthly Rent
$1,261
Estimated Cap Rate
4.9%
Rent-to-Price Ratio
0.4%
Below 1% Rule
Rent ÷ price by zip code
0 of 4 clear the 1% rule · November 2026
| Zip | Median price | Median rent | Rent ÷ price |
|---|---|---|---|
| 40202 | $420,000 | $1,750 | 0.42% |
| 40214 | $245,000 | $950 | 0.39% |
| 40219 | $255,000 | $995 | 0.39% |
| 40205 | $365,000 | $1,350 | 0.37% |
Context · FRED home price index
Market Trends
Louisville metro area — % change since 2018
Home Prices
+72.2%
Rent Index
+36.2%
Average Rent by Bedroom
| Bedrooms | Avg Rent |
|---|---|
| Apartment | $1,035/mo |
| Townhouse | $1,200/mo |
| Condo | $1,329/mo |
| Single Family | $1,788/mo |
Sample Investment Analysis
Based on median price + average rent, 20% down, 6.8% rate, 30yr
Purchase Price$310,000
Down Payment (20%)$62,000
Monthly P&I$1,617
Monthly Rent$1,261
Est. NOI$9,079/yr
Est. Cash Flow-$860/mo
Cash on Cash-15.1%
The Louisville market is cash-flow negative at median prices. Look for properties 15-20% below median or with value-add potential.
What Investors Should Know About Louisville
- 1Compressed cap rates below 5% — focus on appreciation or value-add deals
- 21% Rule fails at median prices — need rent of $3,100/mo to pass
- 3Below-average rents keep entry costs low for new investors
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